I have been hoping that the problem is just one of lack of understanding about how the unfinished footage would look. Everyone is familiar with greenscreens by now and how it is obviously going to replaced in the actual film, but few people (comparatively) understand everything about RED camera footage. I have to believe that the glaring issues many of the critics listed (many of whom I think were knowledgeable enough, and open minded enough to accept some change at least) simply are not expert enough to understand all the ways the footage can be modified. I really can't imagine everyone involved in making the Hobbit being so out of tune with reality that they can't see that their new technology looks like crap to the average eye.

What we need is someone to give us an official vlog with the type of info you have just shared. A little damage control could not hurt.